Southwest Airlines Co. and Continental Airlines Inc. posted fourth-quarter profits, helped by higher passenger traffic and lower fuel costs, but they said the road to recovery would be tough.
Southwest, Philadelphia’s second-busiest carrier, said yesterday that despite a roller-coaster year, the low-fare carrier in 2009 eked out its 37th consecutive year of annual profits.
“To be able to report even a very modest profit in this environment is a huge accomplishment,” Southwest chief executive officer Gary Kelly told investors.
Southwest and Continental “handily” beat Wall Street expectations, JPMorgan Chase & Co. analyst Jamie Baker said in a research note.
With a rough year behind them, airlines see signs of recovery for 2010. The big question is: How much will jet fuel costs go up?
Passenger traffic at Southwest rose 5.3 percent in the latest quarter, but many seats were filled with leisure travelers taking advantage of low fares. There were 7.7 percent fewer flights and seats.
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Southwest posted a fourth-quarter net profit of $116 million, or 16 cents a share, compared with a net loss of $56 million, or 9 cents a share, a year earlier. Excluding special items, fourth-quarter net income was $74 million, or 10 cents a share.
Dallas-based Southwest posted a full-year profit of $99 million, after losing money in the first nine months.
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